In today’s Irish property market, many first-time buyers face a familiar and frustrating dilemma. They can afford monthly mortgage payments, yet they fall short of the full property price due to loan limits or rising home costs. The good news is that government home support is available to bridge that gap — and the First Home Scheme may be the solution you need.
The First Home Scheme is a shared equity initiative launched by the Irish Government to assist eligible buyers in securing newly built homes. If you’re wondering how to apply for the First Home Scheme in Ireland, this guide will walk you through the key details, benefits and eligibility requirements.
Let’s explore how this scheme works, what it means for you, and why it could make all the difference on your journey to homeownership.
What Is Government Home Support in Ireland?
Government home support refers to a series of financial assistance schemes designed to help people purchase homes they might otherwise be unable to afford. These supports aim to address the affordability gap caused by rising property prices, limited mortgage lending, and tight savings requirements.
Key supports available in Ireland include:
- The Help to Buy Scheme
- The First Home Scheme
- Local authority schemes for affordable housing
- The Rebuilding Ireland Home Loan
Each scheme plays a role in expanding access to homeownership, particularly for first-time buyers or those who qualify for targeted assistance.
Introduction to the First Home Scheme
The First Home Scheme is one of the most impactful forms of first-time buyer government assistance currently available in Ireland. It allows eligible applicants to receive up to 30 percent of the property value in equity funding, significantly easing the financial pressure on buyers.
This equity contribution is made in exchange for a stake in your home, which you can repay at any time. There are no monthly repayments for the first five years, and no interest is charged during this period.
The scheme is aimed at closing the gap between what you can afford (through mortgage and deposit) and the cost of a newly built property. For many buyers, it provides the final push needed to secure a home.
Who Qualifies for the First Home Scheme?
Understanding First Home Scheme eligibility in Ireland is the first step in determining whether you can benefit from this government initiative. To be eligible, you must:
- Be a first-time buyer, or qualify under the Fresh Start provision (such as after a divorce or insolvency)
- Purchase a new-build home in a private development
- Live in the property as your main residence
- Take out a mortgage of at least 70 percent of the property’s value
- Be unable to afford the full cost of the home through your mortgage and deposit alone
- Buy a property priced within the regional price ceilings set by the scheme
Price ceilings vary based on region. For example:
- In Dublin and surrounding counties, houses may be eligible up to €475,000
- In other counties, caps range between €275,000 and €425,000
You must also have mortgage approval from a participating lender.
How Does the First Home Scheme Work?
Once you meet the eligibility requirements, here’s how this form of government home support works in practice:
1. Determine Your Affordability Gap
Your mortgage approval and deposit may not be enough to meet the asking price of a property. The First Home Scheme steps in to cover this shortfall, up to 30 percent of the price (or 20 percent if combined with the Help to Buy Scheme).
2. Receive an Equity Contribution
The government provides you with a shared equity contribution. For instance, if you buy a house for €300,000 and receive €60,000 from the scheme, the State holds a 20 percent equity share.
3. No Repayments for Five Years
For the first five years, you are not required to make any repayments or pay interest on the government’s stake. This gives you breathing room to settle into your home and stabilise your finances.
4. Buy Back When You’re Ready
You can repay the equity in full or in part at any time, based on the current market value of the property. The full repayment becomes mandatory if you sell, transfer ownership, or remortgage.
How to Apply for the First Home Scheme in Ireland
Now that you know how the scheme works, here is a step-by-step guide on how to apply for the First Home Scheme in Ireland:
Step 1: Secure Mortgage Approval
You will need an approval in principle from a participating bank. The mortgage must cover at least 70 percent of the purchase price.
Step 2: Check Regional Price Limits
Ensure the home you intend to purchase falls within the applicable price threshold for your area.
Step 3: Register Online
Visit the official First Home Scheme website and set up your account on the application portal.
Step 4: Submit Your Application
Provide documents such as your mortgage approval, proof of deposit, identification, and property details.
Step 5: Review and Sign Legal Documents
Once approved, you’ll receive a legal pack that outlines the terms of the equity agreement. Review it carefully and seek legal advice if needed.
Step 6: Complete Your Home Purchase
At closing, the equity contribution is transferred to your solicitor or developer, completing the purchase.
What Are the Benefits of Government Home Support?
The First Home Scheme offers several compelling benefits:
- Bridges affordability gaps without increasing loan repayments
- No interest or charges for the first five years
- Flexible repayment structure based on your circumstances
- Encourages sustainable homeownership and reduces long-term renting
- Can be used alongside the Help to Buy scheme for additional support
This form of first-time buyer government assistance provides a vital financial buffer at a time when saving large deposits is more difficult than ever.
What Should You Consider Before Applying?
While the scheme is attractive, it’s important to weigh a few practical considerations:
- The government retains a share in your property until repaid
- Repayments are based on future market value, which may increase over time
- A service charge applies from year six onwards
- Legal fees and valuation costs may be incurred when repurchasing equity
- The scheme only applies to new-build homes
Make sure you are fully aware of the long-term implications before entering into a shared equity agreement.
Final Thoughts: Is Government Home Support Right for You?
If you are a first-time buyer who has mortgage approval but still cannot bridge the gap to homeownership, the First Home Scheme offers a practical, flexible solution. This type of government home support helps you take control of your housing future without stretching your finances too thin.
It’s not just about getting help today, but about having the opportunity to invest in your future through homeownership. With careful planning and the right support, your first home in Ireland could be closer than you think.
Ready to Take the Next Step?
At FindQo.ie, we help first-time buyers like you find new-build homes that qualify for schemes like the First Home Scheme. We connect you with trusted estate agents and provide resources to simplify your buying journey.
Visit FindQo.ie today and take the first step towards owning your home with the help of government support.
